The company implements a flexible budget in its business that identifies overhead cost drivers and allocates capital to those over head costs properly. In contrast to this, in this procedure, prediction is difficult for the manager because he believes on a range of estimates of what to expect financially.
This should be a formal business report that provides both specific processes and strategies involving budgeting, costing, capital decision making, capital acquisition, and cost of capital structure.
Highlight relevant concepts for budgeting. These processes and strategies are to be supported with management accounting concepts. It simplifies getting information to people outside of the organization when necessary. WalMart follows needed considerations in its budgeting process and procedures.
Identifying the costing system being used e. It gives ideas to the company to decide the price of The capital decision making process is related to the type and evaluation of investment appraisal techniques currently used by the organization.
For the Management Accounting System MASanalyze how management accounting information was collected, stored and prepared, and most important, analyze how the information is disseminated to various parties.
For the budgeting process and procedures, describe the existing practices and assessments i. The company takes corrective action to control those costs in order to make this closer to the flexible budget prepared in advance. Through use of MAS, the company determines its initial purchase price of raw material including subsequent operating and maintenance costs.
It is very complicated to prepare and difficult to understand for other employees of the company Axson, Through this way, the company is able to make a budget for different levels of activity.
In addition, this process also depends on various variables that effect each other. The strengths and weaknesses of the system should be reflected upon in reference relating to management and financial accounting concepts.
Discuss the advantages and disadvantages of the accounting software currently used by the company. Management accounting information are collected, stored and prepared through use of well designed accounting information systems.
Provide an example on a specific major project of the company to give clarity. Solution Summary The solution provides an analysis of the management accounting system in Wal-Mart. Budgeting processes are also helpful to measure the performance of different departments.
Its budgeting procedures help the company to be cost competitive and to use the resources in an economic manner that improve profitability of the enterprise.
Link budgeting to the performance measurement system.Read this essay on Analysis of Accounting Policec of Wal-Mart. Come browse our large digital warehouse of free sample essays.
Get the knowledge you need in order to pass your classes and more. Only at mi-centre.com".
However, since Wal-Mart is a discount retailer, it has proven favorable for the company to use the retail method of accounting. Under this method the inventory is valued at the lower of cost or market since markdowns are currently taken.
Analysis of Wal-Mart Managerial Accounting Process Table of Contents Company Description of Wal-Mart Page 3 Budgeting Process Page 3 Management Accounting System Page 4 Costing System Page 5 Capital Decision Making Process Page 6 Capital Structure Page 6 Project Conclusion Page 7 Information Sources and Methodology.
Analysis of Wal-Mart Managerial Accounting Process Background For the final project of managing finance Wal-Mart Stores Inc is chosen as the discussion target. Being one of the grocery retail shop leaders in the world, Wal-Mart (WM) operates business with 10, retail units in 27 countries with about USD million of sales in (Wal-Mart.
Free Essay: Analysis of Wal-Mart Managerial Accounting Process Table of Contents Company Description of Wal-Mart Page 3 Budgeting Process Page 3 Management. Inventory Management accounting is more beneficial for forecasts and predictions and proceeding to the valuation method of retail inventory.
(Scholasticus K, ) Wal-Mart can use inventory management accounting to inventory forecasting and review business decisions rely on financial information.Download